The multilevel effect of marketing activities on sales, revenue and profitability in a micro-enterprise

Abstract

Purpose – This study dynamically assessed the effectiveness ofmarketing activities in the generation of product sales, revenue, andprofitability in a micro-enterprise, a context that lacks research inmarketing.

Design/methodology/approach – A longitudinal multilevel study wasconducted using daily panel data for 5,800 products sold and monthlytime series on the business level, involving 26 months of commercialand financial records for a micro-enterprise (a drugstore). Panel andtime series regressions were performed.

Findings – The research shows that (1) marketing activities, inparticular price elasticity, quite accurately generate product sales, (2)the aggregated estimate of total marketing activities predicts monthlycompany revenue and profitability, and (3) in the investigated company,if marketing activities are intensified in the same proportion to increasecosts in products and goods, they are not efficient in generating profit.

Originality/value – This research supports investigations concerningmicro-macro level analysis relationships with commercial and financialdata in order to merge marketing decisions to finance.

The RBGN has the financial support from Fundação Escola de Comércio Álvares Penteado - FECAP and development agencies Conselho Nacional de Desenvolvimento Científico e Tecnológico - CNPq and Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – CAPES.

&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;a href="http://www2.clustrmaps.com/user/60a10ab1b"&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;img src="http://www2.clustrmaps.com/stats/maps-no_clusters/www.fecap.br-rbgn-thumb.jpg" alt="Locations of visitors to this page" /&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;/a&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;